*lol* You were the one who asked if stops are relevant. They are only useful if the element of timing is involved in whatever edge you are applying to the market. If you are just randomly guessing which way currencies will bounce around then you're better off doing what you've been doing.
No, this is what you do: You enter a position; it goes your way, everyone hears about how you just took out a few hundred pips. However, when it goes against you a few hundred points, you've only just lost a mere .00004% of your account. That's what I mean by "trading to be right" vs trading for money. You can't have it both ways. Understood? Good.
That's the thing about carry trades in general, when an adverse shock like today occurs, the hidden cost of interest differential is revealed as the yen gets pushed higher than otherwise would occur from those very same ppl who've shorted it for the rates. But yen has been in a pretty prolonged downtrend these past few months so all in all not that big a retracement.
illiquid just goes to show words can have different meanings to different people... I for one thought you gave away a 'trade secret' when you said concentrate on the entries and then stops will make sense. Too many people put on trades 'hoping' that that trade will be huge. And then using big stops or NO stops to 'make sure' it can be a winner. Hey it took me a few years to figure it out... the less I trade the more I take home.
sKaLpZ yours is a tough business... with no volume indications it is tough to tell what is noise, what is reaction, and what is a real move. I don't know how you do it as i personally would be lost without volume indications to take only appropriate entries. It seems a volitility stop would be best for you... or even a parabolic stop.